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Tankers help temper Kinder Morgan loss

Kinder Morgan reported 15% growth in its terminals business earnings with the help of a boost from its growing Jones Act products tanker fleet.

The boost from the division helped mitigate a $227m third-quarter loss for the Houston midstream energy player, which reversed a $186m profit from the same period of last year.

The New York-listed company's terminals business reported earnings before depreciation and amortisation of $286m, up from $249m in the third quarter of 2015.

The company's tanker fleet, which is one of the largest in the US cabotage trades protected by the Jones Act, is part of its liquids terminals business, which makes up 75% of its terminals division.

"Growth in the liquids business during the quarter versus the third quarter of 2015 was driven by increased contributions from our Jones Act tankers, our refined products terminals joint venture with BP and various expansions across our network," said chief executive Steve Keen.

Kinder Morgan has taken delivery of four US-built products tankers since December, with long-term charters attached to all of them.

The company said the remainder of its newbuildings are on track to be delivered by the end of 2017, bringing the fleet to 16 vessels.

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Tankers help temper Kinder Morgan loss

Kinder Morgan reported 15% growth in its terminals business earnings with the help of a boost from its growing Jones Act products tanker fleet.

The boost from the division helped mitigate a $227m third-quarter loss for the Houston midstream energy player, which reversed a $186m profit from the same period of last year.

The New York-listed company's terminals business reported earnings before depreciation and amortisation of $286m, up from $249m in the third quarter of 2015.

The company's tanker fleet, which is one of the largest in the US cabotage trades protected by the Jones Act, is part of its liquids terminals business, which makes up 75% of its terminals division.

"Growth in the liquids business during the quarter versus the third quarter of 2015 was driven by increased contributions from our Jones Act tankers, our refined products terminals joint venture with BP and various expansions across our network," said chief executive Steve Keen.

Kinder Morgan has taken delivery of four US-built products tankers since December, with long-term charters attached to all of them.

The company said the remainder of its newbuildings are on track to be delivered by the end of 2017, bringing the fleet to 16 vessels.